The Analytical Overview of the Main Currency Pairs on 2018.01.12

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.19473

Open: 1.20326

% chg. over the last day: +0.35

Day's range: 1.20311 – 1.20404

52 wk range: 1.0341 – 1.2069

Yesterday, the account of the ECB December meeting was published, which contributed to the growth of the EUR/USD currency pair by more than 100 points. At the moment, EUR/USD is in a sideways trend. Market participants expect the EUR/USD currency pair to strengthen in the short term. The key trading range is 1.20300-1.20750. We recommend opening positions above/below these marks.

The news feed on 2018.01.12:

- Consumer price index in the US at 15:30 (GMT+2:00);
- Core retail sales index in the US at 15:30 (GMT+2:00);
- The volume of retail sales in the US at 15:30 (GMT+2:00).

Also, we recommend you to pay attention to the speech of the FOMC member Rosengren.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also signals the purchases of EUR/USD.

Trading recommendations

Support levels: 1.20300, 1.20050, 1.19650, 1.19300

Resistance levels: 1.20750

If EUR/USD continues to rise and overcomes the resistance level of 1.20750, we recommend looking for entry points to the market to open long positions. The target movement level is 1.21150-1.21350.

Alternatively, the EUR/USD quotes may decline to the level of 1.20000-1.19800.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.35064

Open: 1.35361

% chg. over the last day: +0.13

Day's range: 1.35377 – 1.35607

52 wk range: 1.1450 – 1.3618

Yesterday, the British pound strengthened against the US dollar, as a result the GBP/USD quotes rose. At the moment, the technical pattern is ambiguous. The trading instrument is consolidating. The key support and resistance levels are 1.35300 and 1.35650, respectively. We recommend opening positions from these marks.

The news feed on the UK economy is calm.

The signals of the indicators are ambiguous. The price crossed 200 MA.

The MACD histogram is in the positive zone and above the signal line, which signals the purchases of GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also gives a signal to buy GBP/USD.

Trading recommendations

Support levels: 1.35300, 1.35050, 1.34750

Resistance levels: 1.35650, 1.35950

If the GBP/USD quotes continue to rise and fix above the resistance level of 1.35650, we recommend considering purchases. The target movement level is 1.36050-1.36250.

Alternative option. If the quotes fix below the support level of 1.35300, it is necessary to look for entry points to the market to open short positions. The movement is tending potentially to 1.35100-1.34900.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.25463

Open: 1.25190

% chg. over the last day: +0.12

Day's range: 1.25342 – 1.25535

52 wk range: 1.2059 – 1.3795

At the moment, the technical pattern on the USD/CAD currency pair is ambiguous. Investors expect additional drivers. The USD/CAD quotes are being traded in the range of 1.25100-1.25550. It is recommended to open positions if the price fixes above/below these marks.

The publication of important statistics on the economy of Canada is not planned today. We recommend you to pay the attention to reports from the USA.

Indicators do not send accurate signals. The price has fixed above 50 MA and 200 MA, which indicates bullish sentiment.

The MACD histogram is in the zero zone. There are no signals at the moment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.

Trading recommendations

Support levels: 1.25100, 1.24400, 1.23850

Resistance levels: 1.25550, 1.25900

If the price fixes above the local resistance of 1.25550, we recommend considering purchases of USD/CAD. The target movement level is 1.25900-1.26100.

Alternative option. If the USD/CAD quotes fix below the support level of 1.25100, it is necessary to look for entry points to the market to open short positions. The movement is tending potentially to 1.24900-1.24700.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 111.428

Open: 111.210

% chg. over the last day: -0.12

Day's range: 111.113 – 111.233

52 wk range: 99.53 – 118.67

Yesterday, sales were prevailed on the USD/JPY currency pair. The US dollar weakened due to weak economic reports. Today, the currency pair continues to decline. At the moment, USD/JPY is being traded in the range of 111.100-111.450. Positions should be opened from the key levels.

The publication of important economic reports from Japan is not planned. We recommend you to pay attention to the reports from the USA.

The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/JPY.

Trading recommendations

Support levels: 111.100

Resistance levels: 111.450, 112.350, 112.750, 113.200

If the price continues to fall and fixes below the local support level of 111.100, we recommend looking for entry points to the market to open short positions. The target movement level is 110.900-110.700.

If the price fixes above the resistance level of 111.450, we recommend considering purchases of USD/JPY. The movement is tending potentially to 111.650-111.850.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.